About Us

Frequently Asked Questions

Please reach us at chris@pioneerpropertypartners.net if you can't find an answer to your question.

Why should I invest in real estate when I can get the same return in the stock market?

Historically, major stock indexes return between 8-10% over the long term. However, stocks are much riskier to leverage, don’t have the same tax benefits, and of course unless you are buying a controlling share in a company that you are not going to have any decision making capabilities in. Commercial real estate not only has the capability to beat those returns in many cases, but has more predictable cash flow and appreciation, captures tax advantages, and depending on the structure of an operating agreement will grant you more decision making power. Plus, the stock market is historically much more volatile than the real estate market.

Why would I invest with you and not someone else?

PPP is dedicated to being the most transparent and communicative partner you have ever ventured into business with. We are in this for the long run and seek to create lasting partnerships to continually do future deals with. Other partners or groups you may partner with may not have that same level of transparency and communication.

What does PPP bring to the table?

Relationships & networks, strong market knowledge, boots on the ground, project management and property management experience are where PPP is most valuable. We are committed to being your active partner and have a CCIM(certified commercial investment member) on our team to assist with market analysis and underwriting when scoping out acquisitions.

Why shouldn’t I just buy real estate on my own without a partner?

You absolutely can! Where PPP comes into play is for individuals who are attracted to owning real estate, still want some decision-making power, but don’t want to handle the more labor and time intensive activities such as acquisitions, due diligence, project management, and asset management. Additionally, PPP is well suited for the individual who is attracted to Florida markets but is based outside of the state or country.

What if the market tanks? What if there’s a recession?

PPP's model is to only acquire assets with intrinsic value that can be extracted quickly. In other words, we don't go after anything that doesn't have potential to have the value raised through our own forced value-add. We also stress test all our acquisitions during underwriting to account for large decreases in rent and increases in vacancy, typically 25% and 10% respectively. If we can still maintain our debt service ratios after those tests, we are well positioned to withstand a downturn and wait for the market to turn around.

What if people stop moving to the Metro areas you invest in and the market does not stay strong?

PPP loves and understands the West Florida market and considering all the data is very confident it has some of the best long-term potential in the United States. However, to hedge against risk PPP's long-term plan is to expand into not just other Florida markets, but markets in landlord friendly states such as Texas, Tennessee, and the Carolinas.

What if we can’t sell or refinance?

During a down market if the lending environment is not favorable and we could not dispose a property for its fair value, we simply hold for cash flow, continue to pay down the loan, and wait for markets to turn back around. Again, PPP only acquires properties with significant DSCR(debt service coverage ratio) that can withstand increases in vacancy and decreases in rents should that arise during a turbulent market.

How will you know how much to budget for rehabs, maintenance, capital expenditures, etc.? And are you adjusting for inflation?

Capex requirements will often be dictated by a lender, but budgets will vary based on age, condition, and location of a property. An older property that perhaps needs a new roof, AC compressors, or other heavy capex will have a larger up-front budget but will not require such a heavy maintenance budget for the first couple of years due to the upfront capex. Budgets and expenses are always adjusted for inflation during underwriting.

What are the risks involved with taking on an investment in real estate?

As with every investment, there are always risks. However, often, one of the riskiest things someone can do is nothing. In such an inflationary environment it is important to have your money gaining interest of at least the current rate of inflation to protect you from inflation & capital loss. The biggest risk associated with real estate is not being able to cover debt service and having a lender re-possess the property. Of course, as mentioned previously we only acquire assets that have gone through rigorous stress testing to ensure this does not happen.

INTERESTED IN SEEING WHAT YOUR PROPERTY IS WORTH OR HOW WE CAN HELP GET YOU INTO YOUR NEXT INVESTMENT?

Meet The Team

TESTIMONIALS

Frequently Asked Questions

About US

INTERESTED IN SEEING WHAT YOUR PROPERTY IS WORTH OR HOW WE CAN HELP GET YOU INTO YOUR NEXT INVESTMENT?

Meet The Team

TESTIMONIALS

Frequently Asked Questions

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